We have audited the accompanying financial statements of LIME CHEMICALS LIMITED ("the Company"), which comprise the Balance
Sheet as at 31st March 2024, the Statement of Profit and Loss (including other Comprehensive Income), the Statement of Changes in
Equity and the Statement of Cash Flows for the year ended on that date and notes to the financial statements, including a summary
of significant accounting policies and other explanatory information (hereinafter referred to as "the financial statements").
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give
the information required by the Companies Act, 2013 ("the Act") in the manner so required and give a true and fair view in conformity
with the Indian Accounting Standards prescribed under section 133 of the Act read with the Companies (Indian Accounting Standards)
Rules, 2015, as amended, ('Ind AS') and other accounting principles generally accepted in India, of the state of affairs of the Company
as at 31st March, 2024, the loss including other comprehensive income, changes in equity and its cash flows for the year ended on
that date.
Basis for Opinion
We conducted the audit of financial statements in accordance with the Standards on Auditing ("SAs") specified under section 143(10)
of the Act. Our responsibilities under those Standards are further described in the Auditor's Responsibilities for the Audit of the
financial statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by
the Institute of Chartered Accountants of India ("ICAI") together with the ethical requirements that are relevant to our audit of the
financial statements under the provisions of the Act and the Rules thereunder, and we have fulfilled our other ethical responsibilities
in accordance with these requirements and the ICAI's Code of Ethics. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our opinion on the financial statements.
Emphasis of Matter
We draw attention to the following matters in notes to the financial statements: -
In Note 33B(c) to the financial statement regarding non provision of interest of Rs.3.00 lakhs payable to party registered under Micro,
Small & Medium Enterprise Act, 2006 and also liability of Rs.30.85 Lakhs not accounted.
Our opinion is not modified in respect of the above matter.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the standalone
Ind AS financial statements of the current period. These matters were addressed in the context of our audit of the Ind AS financial
statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
We have determined the matters described below to be the key audit matters to be communicated in our report.
The Company recognizes Revenue from the sale of goods ("Revenue") when the Company performs all its agreed obligations to
its customers, the amount of revenue can be measured reliably and recovery of the consideration is probable. The timing of such
recognition is when the control over the same is transferred to the customer, which is mainly upon delivery. The timing of revenue
recognition is relevant to the reported performance of the Company.
Information Other than the financial statements and Auditor's Report Thereon
The Company's Board of Directors are responsible for the preparation of other information. The other information comprises the
information included in the Director's Report but does not include the financial statements and our auditor's report thereon.
Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion
thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider
whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of our
audit, or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information; we are
required to report that fact. We have nothing to report in this regard.
Responsibility of Management and Board of Directors for the financial statements
The Company's management and Board of Directors are responsible for the matters stated in Section 134(5) of the Act with respect
to the preparation of these financial statements that give a true and fair view of the financial position, financial performance, total
comprehensive income, changes in equity and cash flows of the Company in accordance with the Indian Accounting Standards (Ind
AS) and other accounting principles generally accepted in India.
This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for
safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application
of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation
and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness
of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and
are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Company's ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either
intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
The Board of Directors are also responsible for overseeing the Company's financial reporting process.
Auditor's Responsibilities for the Audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a
high level of assurance, but is not a guarantee that an audit conducted in accordance with Standards on Audit (SAs) will always detect
a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in
the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial
statements.
As part of an audit in accordance with SAs, specified under section 143(10) of the Act, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:
> Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and
perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis
for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control;
> Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in
the circumstances. Under section 143(3)(i) of the Companies Act 2013, we are also responsible for expressing our opinion on
whether the company has adequate internal financial controls system, in relation to the financial statements in place and the
operating effectiveness of such controls;
> Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures
made by management;
> Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence
obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's
ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in
our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our
opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events
or conditions may cause the Company to cease to continue as a going concern;
> Evaluate the overall presentation, structure, and content of the financial statements, including the disclosures, and whether the
financial statements represent the underlying transactions and events in a manner that achieves fair presentation;
Materiality is the magnitude of misstatements in the standalone financial statements that, individually or in aggregate, makes it
probable that the economic decisions of a reasonably knowledgeable user of the standalone financial statements may be influenced.
We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of
our work; and (ii) to evaluate the effect of any identified misstatements in the standalone financial statements.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit
and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding
independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that are of most significance in
the audit of the financial statements of the current year and are therefore the key audit matters. We describe these matters in our
auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we
determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably
be expected to outweigh the public interest benefits of such communication.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2020 ("the Order"), issued by the Central Government of India in terms
of sub-section (11) of section 143 of the Companies Act, 2013, we give in the Annexure "A", a statement on the matters specified
in paragraphs 3 and 4 of the Order, to the extent applicable.
2. As required by section 197(16) of the Act based on our audit, we report that the Company has not paid remuneration to its
directors during the year in accordance with the provisions of and limits laid down under section 197 read with Schedule V
to the Act. The Ministry of Corporate Affairs has not prescribed other details under section 197(16) which are required to be
commented upon by us.
3. As required by Section 143(3) of the Act, based on our audit we report that:
(a) We have sought and obtained all the information and explanations, which to the best of our knowledge and belief were
necessary for the purposes of our audit of the accompanying financial statement;
(b) In our opinion, proper books of account as required by law have been kept by the Company so far as it appears from our
examination of those books;
(c) The Balance Sheet, the Statement of Profit and Loss (including Other Comprehensive Income), Statement of change in Equity
and the Statement of Cash Flow dealt with by this Report are in agreement with the books of account;
(d) In our opinion, the aforesaid financial statements comply with the Indian Accounting Standards specified under Section 133
of the Act read with the Rule 7 of the Companies (Account) Rules, 2014.
(e) The matter described in paragraph relating to Emphasis of Matter may have an adverse effect on the functioning of the
company.
(f) On the basis of the written representations received from the directors as on 31st March, 2024 taken on record by the Board
of Directors, none of the director is disqualified from being appointed as a director in terms of Section 164(2) of the Act;
(g) With respect to the adequacy of the internal financial controls over financial statements of the Company and the operating
effectiveness of such controls, refer to our separate Report in "Annexure B".
Our report expresses an unmodified opinion on adequacy and operating effectiveness of Company's internal financial controls
over financial reporting.
4. With respect to the other matters to be included in the Auditor's Report in accordance with Rule 11 of the Companies (Audit and
Auditors) Rules, 2014, as amended in our opinion and to the best of our information and according to the explanations given to
us:
(i) The Company has disclosed the impact of pending litigations on its financial position in its financial statements (Refer Note
35 to the financial statements).
(ii) The Company did not have any long - term contracts including derivative contracts; as such the question of commenting on
any material foreseeable losses thereon does not arise.
(iii) There were no amounts which were required to be transferred to the Investor Education and Protection Funds of the
Company for the year ended 31st March, 2024.
(iv) (a) The Management has represented that, to the best of its knowledge and belief no funds have been advanced or loaned
or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company
to or in any other persons or entities, including foreign entities ("Intermediaries"), with the understanding, whether
recorded in writing or otherwise, that the Intermediary shall, directly or indirectly lend or invest in other persons or
entities identified in any manner whatsoever ("Ultimate Beneficiaries") by or on behalf of the Company or provide any
guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(b) The Management has represented that, to the best of its knowledge and belief no funds have been received by the
Company from any persons or entities, including foreign entities ("Funding Parties"), with the understanding, whether
recorded in writing or otherwise, that the Company shall directly or indirectly, lend or invest in other persons or entities
identified in any manner whatsoever ("Ultimate Beneficiaries") by or on behalf of the Funding Parties or provide any
guarantee, security or the like on behalf of the Ultimate Beneficiaries.
(c) Based on the audit procedures performed that we considered reasonable and appropriate in the circumstances, nothing
has come to our notice that has caused us to believe that the representations under sub-clause (a) and (b) of Rule 11(e)
mentioned above contain any material miss-statement.
(v) The Company has not declared dividend for the year ended 31st March, 2024
(vi) Based on our examination which includes test checks, the company has used an accounting software for maintaining its
books of accounts which has a feature of recording audit trail (edit log) facility and the same operated throughout the year
for all the relevant transactions recorded in the software. Further, for the year under audit, we did not come across any
instance of the audit trail feature being tampered with.
As per proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 is applicable to the Company with effect from 1st April, 2023,
and reporting under Rule 11(g) of Companies (Audit and Auditors) Rules, 2014 on preservation of audit trail as per the statutory
requirements for record retention is not applicable for the financial year ended 31st March, 2024.
For R. A. Kuvadia & Co.
Chartered Accountants
F.R.N. 105487W
Place: Mumbai
Date: 30.05.2024 R. A. Kuvadia
(Proprietor)
M. No. 040087
UDIN: 24040087BKAIHS5293
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